By Lehlohonolo Lehana.
The Department of Mineral Resources and Energy (DRME) has published the official fuel price adjustments for May 2023.
Petrol (both 93 and 95 unleaded) will be hiked by 37c a litre, while diesel will be cut by 47.5c (0.005% sulphur) and 73.5c (0.05% sulphur), the Department of Mineral Resources and Energy announced on Tuesday.
Illuminating paraffin will drop by 33c a litre, while the maximum LP Gas Retail Price will be cut by R4.44 a kilogram.
The changes will come into effect from Wednesday, 3 May 2023.
The Minister of Finance, in his Budget on 22 February 2023, announced that an increase of 1.0 c/l will be made to the General Fuel Levy (Carbon Levy) in the price structures of both petrol and diesel.
Furthermore, an increase of 1.0 c/l will be added to the petrol and diesel price structures to allow the industry to recoup the levy payment for April 2023. This additional 1.0 c/l will be removed from the price structures of petrol and diesel with effect from 7 June 2023.
With effect from 3 May 2023, the Fuel Levy will increase to 396.0 c/l and 382.0 c/l respectively in the price structure of both petrol and diesel.
The average international product prices for Petrol increased, whilst Diesel and Illuminating Paraffin decreased during the period under review.
The Rand appreciated against the US Dollar during the period under review, on average, when compared to the previous period. The average Rand/US Dollar exchange rate for the period 31 March 2023 to 25 April 2023 was 18.1331 compared to 18.3045 during the previous period.
This led to a lower contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin by 12.25 c/l, 11.52 c/l and 11.62 c/l respectively.
In line with the provisions of the Self-Adjusting Slate Levy Mechanism, a Slate Levy of 0.00 c/l (decrease of 17.54 c/l) will be implemented into the price structures of petrol and diesel with effect from 03 May 2023.